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AI in ag: A grower's profit potential, future technologyAI in ag: A grower's profit potential, future technology

Within the next decade, the artificial intelligence market is expected to grow 30%, topping $3 trillion by 2033. Juan Landivar discusses how this technology is likely to improve a producer's profit potential and what technology is on the horizon.

Shelley E. Huguley, Senior Editor

December 30, 2024

5 Min View

Projections indicate the artificial intelligence market will experience a 30% growth in the next decade, topping $3 trillion by 2033, according to Juan Landivar, director of the Texas A&M AgriLife Center in Corpus Christi. But how will this technology benefit a producer's bottom line?

Landivar, who recently spoke with Farm Press at the Texas Plant Protection Association Conference in College Station, listed four ways AI technology will help producers improve their profit margin:

  1. In-season management decisions

  2. Marketing their crop

  3. Marketing biomass for carbon credits

  4. Marketing their data

Gatekeepers

As Landivar develops AI models, he consults economists, which he calls the gatekeepers of these AI tools. "They look at whether these technologies will make a profit for the grower. If they're not going to profit the grower, then the technology is not going to go anywhere."

He also visits with producers, who say that the development of AI tools to assist with in-season management decisions like growth regulators is important. "But that's only a part of a package that results in good yields and a quality product," they tell Landivar.

Predicting a field's yield in advance would help with financial management decisions, such as hedging.

"If they know they're going to have a good crop, they might be able to sell more of it and take advantage of prices or negotiate for inputs. If they know they are going to make a 3-bale crop, they might go to their seed company and say, 'I'm going to buy 5,000 more bags if you give me a good price,' and they know they'll have the money to pay."

Related:AI is the future of agriculture

In contrast, if a producer knows he or she is only going to make a bale, they'll know in advance not to make those offers. "So, the financial management of the operation, the growers tell me that's where they make their money in making decisions in marketing, purchasing of their chemicals and so on."

Future technology

As for future technology, Landivar said the AI industry needs to develop a way to easily transfer, operate, and navigate the new technology. "The data is there. Everything I presented at this conference, the defoliation timing, growth regulator timing and rates, and yield forecasting, I do it by looking at a bunch of files, pulling data from this file and that file, and I come out with the graph that I presented. But there's a way of automating that."

Landivar noted a tool a computer science graduate student is developing. "We call it Mr. Cotton. The user might be able to ask, 'Hey, Mr. Cotton, does my field need growth regulator today and how much?'"

Related:Mark Nemec receives TPPA’s Norman Borlaug award

If the answer is yes, it will provide the producer a map indicating where he or she needs to apply higher rates and areas where less is needed. "That's coming," he said of the technology.

Even more futuristic are what scientists at the Texas A&M University Data Science Research Institute are envisioning. This technology would allow farmers to place on a helmet where they could virtually explore their fields. They would be able to select a specific plant, click on it, and gather detailed information about that plant.

But no matter what's on the horizon, Landivar noted, "Whatever we come out with, it has to be profitable for the producer."

Take a look at this interview to learn more.

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About the Author

Shelley E. Huguley

Senior Editor, Southwest Farm Press

Shelley Huguley has been involved in agriculture for the last 25 years. She began her career in agricultural communications at the Texas Forest Service West Texas Nursery in Lubbock, where she developed and produced the Windbreak Quarterly, a newspaper about windbreak trees and their benefit to wildlife, production agriculture and livestock operations. While with the Forest Service she also served as an information officer and team leader on fires during the 1998 fire season and later produced the Firebrands newsletter that was distributed quarterly throughout Texas to Volunteer Fire Departments. Her most personal involvement in agriculture also came in 1998, when she married the love of her life and cotton farmer Preston Huguley of Olton, Texas. As a farmwife, she knows first-hand the ups and downs of farming, the endless decisions made each season based on “if” it rains, “if” the drought continues, “if” the market holds. She is the bookkeeper for their family farming operation and cherishes moments on the farm such as taking harvest meals to the field or starting a sprinkler in the summer with the whole family lending a hand. Shelley has also freelanced for agricultural companies such as Olton CO-OP Gin, producing the newsletter Cotton Connections while also designing marketing materials to promote the gin. She has published articles in agricultural publications such as Southwest Farm Press while also volunteering her marketing and writing skills to non-profit organizations such as Refuge Services, an equine-assisted therapy group in Lubbock. She and her husband reside in Olton with their three children Breely, Brennon and HalleeKate.

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